Homelessness not only causes poor outcomes for the families and individuals affected; it is costly to communities, states, and taxpayers. Children experiencing homelessness are particularly vulnerable to negative outcomes, and more likely to become homeless as adults. The homeless population is diverse, and multiple, interacting structural and individual factors may lead to homelessness. Rigorous research suggests that access to affordable housing is key to reducing homelessness and improving individual and family well being, and simply providing services without housing will not be effective. Permanent supportive housing has been particularly effective in reducing chronic homelessness. States can do many things to make housing more affordable through policies and practices that increase the supply of affordable housing and make existing housing more affordable to individual households through rent subsidies.

For example, New Jersey has built more affordable housing per capita in high-opportunity communities near good schools and jobs than any other state in the nation, and uses a wide range of local, state, and federal funding sources to generate this housing. Other successful state strategies for addressing homelessness include rental assistance, capital/construction assistance, bond financing, local taxes, cross-jurisdictional planning, inclusionary zoning, and programs to address specific household needs. Key to making many of these policy options work for individuals and families is having an integrated service system.